OpenTable Business Model: How OpenTable Makes Money

CREATED - August 8, 2025 | 64 Views

In today’s fast-paced digital world, convenience drives consumer behavior, especially in the food and hospitality industry. OpenTable has become a go-to platform for diners looking to reserve tables at their favorite restaurants with just a few clicks. But beyond its user-friendly interface, what powers OpenTable’s success? Let’s break down the OpenTable business model, understand how OpenTable makes money, and examine the different components of the OpenTable revenue model.

What is OpenTable?

OpenTable is an online restaurant reservation platform founded in 1998 and acquired by Booking Holdings (formerly Priceline Group) in 2014. It connects diners with restaurants, allowing users to make real-time reservations, read reviews, and discover new dining spots. The platform services both consumers and restaurants, making it a two-sided marketplace.

OpenTable Business Model Overview

The OpenTable business model is a classic example of a platform business. It facilitates transactions between two parties—diners and restaurants—by providing a streamlined booking experience for users and a robust backend system for restaurant owners to manage reservations, optimize seating, and gather customer insights.

Key participants in the OpenTable ecosystem:

  • Diners: Individuals looking for restaurant reservations.
  • Restaurants: Businesses seeking to attract more customers and manage bookings efficiently.

The platform benefits both parties:

  • Diners gain convenience, transparency, and access to real-time availability.
  • Restaurants gain visibility, operational tools, and increased occupancy.

How OpenTable Makes Money

So, how does OpenTable make money? It primarily generates revenue through the following streams:

1. Reservation Fees (Per-Seat Fees)

OpenTable charges restaurants a fee for each reservation made through its platform. This is typically a per-cover fee (a “cover” refers to one diner).

  • Standard Plan: Around $1 per diner for reservations made via OpenTable.com or its app.
  • Guest Center (Premium Plan): May include additional monthly fees but reduced per-cover charges.

Restaurants view this fee as a marketing cost to acquire new customers and fill empty seats.

2. Subscription Fees

OpenTable offers a monthly subscription for its reservation management software called Guest Center. This platform includes advanced features like:

  • Table management
  • Waitlist control
  • Customer relationship management (CRM)
  • Reporting and analytics

Pricing varies depending on the features selected, but it generally ranges from $29 to $449 per month.

3. Marketing and Advertising Services

Restaurants can pay for enhanced visibility on OpenTable through sponsored listings or featured placements in search results. This helps them attract more reservations and stand out in competitive markets.

This advertising revenue adds another dimension to the OpenTable revenue model by leveraging its diner traffic for promotion.

4. Corporate and Private Dining Solutions

OpenTable also earns revenue through its OpenTable for Business offerings, which cater to hotels, concierges, and corporations that manage client dining or private events. This includes tools for:

  • Concierge reservations
  • Group bookings
  • Event planning integrations

These services often come with enterprise pricing models.

Additional Revenue Streams

While the primary sources are reservation-based, OpenTable has explored additional features and services, such as:

  • Gift cards: Allowing diners to buy and redeem restaurant gift cards.
  • Experiences and events: Selling curated dining experiences, tasting menus, and special events, often with a cut of ticket sales.

Final Thoughts: A Win-Win Model

The OpenTable business model succeeds because it creates value for both diners and restaurants. By focusing on convenience, operational efficiency, and marketing reach, OpenTable has positioned itself as a leader in the restaurant reservation space.

To summarize:

  • The platform uses a two-sided marketplace model.
  • OpenTable makes money through per-cover fees, subscriptions, advertising, and enterprise solutions.
  • The OpenTable revenue model is diverse and scalable, enabling consistent growth in both domestic and international markets.

As dining continues to evolve with technology, OpenTable’s model offers a blueprint for how digital platforms can bridge customer convenience and business optimization.

Looking to launch an app like OpenTable? Partner with Goteso, the best mobile app development company known for delivering high-performance, scalable, and user-friendly applications. Whether you’re building a restaurant reservation platform, a two-sided marketplace, or a custom solution tailored to your business model, Goteso’s expert team of developers, designers, and strategists will bring your vision to life. With a proven track record in mobile app development and a deep understanding of the hospitality tech landscape, Goteso ensures your app is built for success from day one.

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